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U.S. Software Industry Analysis

UpdatedDec 19, 2025
DataAggregated Company Financials
Companies425
  • 7D-2.4%
  • 3M-11.5%
  • 1Y6.8%
  • YTD9.2%

Over the last 7 days, the Software industry has dropped 2.4%, driven by Oracle declining 5.2%. This takes the industry's 12 month performance to a gain of 6.8%. Looking forward, earnings are forecast to grow by 20% annually.

Industry Valuation and Performance

Has the U.S. Software Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Fri, 19 Dec 2025US$7.0tUS$645.4bUS$164.7b31.2x42.3x10.8x
Sun, 16 Nov 2025US$7.4tUS$641.0bUS$159.9b31.2x46x11.5x
Tue, 14 Oct 2025US$7.7tUS$621.4bUS$151.7b35.4x50.7x12.4x
Thu, 11 Sep 2025US$7.5tUS$621.2bUS$151.2b35.5x49.3x12x
Sat, 09 Aug 2025US$7.6tUS$613.9bUS$149.3b38.1x50.7x12.3x
Mon, 07 Jul 2025US$7.4tUS$598.9bUS$131.3b43x56.4x12.4x
Wed, 04 Jun 2025US$6.8tUS$593.5bUS$131.7b37.8x51.6x11.4x
Fri, 02 May 2025US$6.0tUS$588.6bUS$135.8b32.1x44.2x10.2x
Sun, 30 Mar 2025US$5.7tUS$582.3bUS$130.7b29.4x43.7x9.8x
Tue, 25 Feb 2025US$6.4tUS$580.0bUS$129.9b37.8x49x11x
Thu, 23 Jan 2025US$6.5tUS$568.2bUS$129.2b42.2x50.3x11.4x
Sat, 21 Dec 2024US$6.5tUS$569.1bUS$128.8b40.8x50.6x11.5x
Mon, 18 Nov 2024US$6.3tUS$566.6bUS$127.1b41.4x49.9x11.2x
Wed, 16 Oct 2024US$6.1tUS$551.7bUS$124.1b38.5x48.9x11x
Fri, 13 Sep 2024US$5.9tUS$552.2bUS$123.6b36.7x47.7x10.7x
Sun, 11 Aug 2024US$5.6tUS$548.6bUS$121.5b34.7x46.1x10.2x
Tue, 09 Jul 2024US$6.2tUS$530.5bUS$118.1b40.5x52.3x11.6x
Thu, 06 Jun 2024US$5.1tUS$476.3bUS$107.0b40.1x47.8x10.7x
Sat, 04 May 2024US$5.1tUS$476.8bUS$103.2b42.5x49.8x10.8x
Mon, 01 Apr 2024US$5.4tUS$465.9bUS$98.3b45.3x54.9x11.6x
Wed, 28 Feb 2024US$5.3tUS$466.6bUS$95.1b43.6x56.1x11.4x
Fri, 26 Jan 2024US$5.4tUS$486.7bUS$82.4b44.9x65.9x11.2x
Sun, 24 Dec 2023US$5.2tUS$486.1bUS$82.9b44.5x62.4x10.6x
Tue, 21 Nov 2023US$4.9tUS$482.4bUS$79.9b45.3x61.5x10.2x
Thu, 19 Oct 2023US$4.5tUS$477.3bUS$73.7b42.5x61.5x9.5x
Sat, 16 Sep 2023US$4.6tUS$479.6bUS$72.7b45.6x63.7x9.7x
Mon, 14 Aug 2023US$4.4tUS$473.0bUS$70.1b45.7x63x9.3x
Wed, 12 Jul 2023US$4.5tUS$460.7bUS$60.1b49.2x74.8x9.8x
Fri, 09 Jun 2023US$4.3tUS$460.0bUS$62.1b42.5x69.3x9.4x
Sun, 07 May 2023US$4.0tUS$455.5bUS$60.6b38.1x65.6x8.7x
Tue, 04 Apr 2023US$3.9tUS$453.7bUS$60.6b43.9x65.1x8.7x
Thu, 02 Mar 2023US$3.4tUS$440.2bUS$58.9b42.3x58.5x7.8x
Sat, 28 Jan 2023US$3.5tUS$435.5bUS$57.9b42.5x60.2x8x
Mon, 26 Dec 2022US$3.2tUS$434.3bUS$60.3b41.7x53.7x7.5x
Price to Earnings Ratio

53.7x


Total Market Cap: US$3.2tTotal Earnings: US$60.3bTotal Revenue: US$434.3bTotal Market Cap vs Earnings and Revenue0%0%0%
U.S. Software Industry Price to Earnings3Y Average 55.1x202320242025
Current Industry PE
  • Investors are pessimistic on the American Software industry, indicating that they anticipate long term growth rates will be lower than they have historically.
  • The industry is trading at a PE ratio of 42.3x which is lower than its 3-year average PE of 55.1x.
  • The industry is trading close to its 3-year average PS ratio of 10.5x.
Past Earnings Growth
  • The earnings for companies in the Software industry have grown 40% per year over the last three years.
  • Revenues for these companies have grown 14% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the U.S. Tech industry?

US Market-2.05%
Tech-4.31%
Software-2.36%
Systems Software-2.12%
Application Software-2.87%
Industry PE
  • Investors are most optimistic about the Application Software industry which is trading above its 3-year average PE ratio.
    • Analysts are expecting annual earnings growth of 25.3%, which is lower than the prior year's growth of 41.1% per year.
  • Investors are most pessimistic about the Systems Software industry, which is trading close to its 3-year average of 40.0x.
Forecasted Growth
  • Analysts are most optimistic on the Application Software industry, expecting annual earnings growth of 25% over the next 5 years.
  • However this is lower than its past earnings growth rate of 41% per year.
  • In contrast, the Systems Software industry is expected to see its earnings grow by 17% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
APP AppLovinUS$694.373.5%
+US$8.0b		103.6%PE80.5x
MSFT MicrosoftUS$483.980.1%
+US$3.8b		10.7%PE34.3x
SNPS SynopsysUS$458.131.1%
+US$988.4m		-6.9%PE65.4x
NTNX NutanixUS$50.696.5%
+US$840.9m		-22.1%PE62.2x
HUBS HubSpotUS$390.003.7%
+US$736.5m		-45.8%PS6.8x

Latest News

ORCL
US$180.03
Oracle
7D
-5.2%
1Y
6.1%
APP
US$694.37
AppLovin
7D
3.5%
1Y
103.6%

Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%

Dec 19
Subdued Growth No Barrier To AppLovin Corporation (NASDAQ:APP) With Shares Advancing 31%
NTNX
US$50.69
Nutanix
7D
6.5%
1Y
-22.1%
PLTR
US$185.69
Palantir Technologies
7D
-1.0%
1Y
150.2%
CRM
US$257.85
Salesforce
7D
-1.7%
1Y
-25.0%
MSFT
US$483.98
Microsoft
7D
0.1%
1Y
10.7%

MSFT: Expanded AI Partnerships And Infrastructure Will Drive Durable Cloud Leadership

Analysts have nudged their Microsoft price target slightly higher to approximately $650, reflecting confidence that the company's broadened AI partnerships, resilient Azure growth, and durable margin profile justify modestly stronger long term revenue and earnings assumptions despite rising capex and hyperscaler caution. Analyst Commentary Street research remains broadly constructive on Microsoft, with a cluster of recent notes highlighting the company as a primary beneficiary of accelerating AI adoption, robust cloud demand, and deepened model partnerships, even as a minority of voices urge greater caution around hyperscaler capital intensity and returns.
HUBS
US$390.00
HubSpot
7D
3.7%
1Y
-45.8%

HUBS: AI-Driven Multi-Hub Adoption Will Support Long-Term Upside Despite Sector Headwinds

Analysts have modestly reduced their fair value estimate for HubSpot to approximately $580 from about $585 per share, reflecting a wave of lowered price targets as they balance still-strong double digit growth and AI driven opportunities against softer reacceleration expectations, competitive AI headwinds, and broader software multiple compression. Analyst Commentary Street research reflects a constructive but more measured stance on HubSpot, with many firms trimming price targets while reiterating positive long term views on growth, profitability, and AI optionality.
TEAM
US$165.00
Atlassian
7D
1.1%
1Y
-34.3%

TEAM: Cloud Transition Progress And AWS Partnership Will Drive Long-Term Upside

Analysts have reduced their price target on Atlassian from $196.00 to $178.00, citing slightly higher perceived risk, a moderation in expected revenue growth, and a modestly lower long term profit margin outlook. Analyst Commentary Bearish analysts have framed the reduced price target as a recalibration of expectations rather than a shift in the long term thesis.
NBIS
US$78.09
Nebius Group
7D
-17.2%
1Y
188.7%
SNPS
US$458.13
Synopsys
7D
1.1%
1Y
-6.9%
KVYO
US$31.51
Klaviyo
7D
5.6%
1Y
-28.5%

KVYO: Expanding CRM Platform Will Drive Gains Amid AI Disruption Fears

Analysts have trimmed their Klaviyo price target slightly, with fair value easing by about $0.16 to roughly $43.52 as they balance ongoing concerns around AI driven competitive pressure and lack of long term revenue guidance against expectations for continued revenue growth and operating leverage. Analyst Commentary Recent Street research reflects a balanced but increasingly polarized view on Klaviyo, with valuation seen as compelling by some and execution and competitive risk keeping others cautious.
NOW
US$153.38
ServiceNow
7D
-11.3%
1Y
-29.7%
CRWD
US$477.26
CrowdStrike Holdings
7D
-5.5%
1Y
31.7%

CRWD: Elevated Expectations For AI Security May Trigger Future Multiple Compression

Analysts have raised their fair value estimate for CrowdStrike Holdings to approximately $416 from about $363, citing broadly higher Street price targets. These targets are underpinned by expectations for sustained net new annual recurring revenue momentum, improving profitability, and durable double digit long term growth supported by AI driven security demand.
ROP
US$450.51
Roper Technologies
7D
1.0%
1Y
-13.7%

ROP: Recurring Cash Flows And First Buyback Will Drive Future Upside

Our Roper Technologies analyst price target edges slightly lower to $573.56 from $575.50, as analysts balance the company’s durable, recurring cash flow profile and long term compounder status against a more cautious outlook following mixed Q3 results, narrowed organic growth guidance, and shifting investor preference toward higher beta and cyclical names. Analyst Commentary Recent Street research reflects a more balanced view on Roper Technologies, with analysts recognizing the strength of its high margin software portfolio while revising expectations to reflect moderating organic growth and shifting risk appetite across the sector.
CDNS
US$315.10
Cadence Design Systems
7D
-6.1%
1Y
5.1%

CDNS: AI And HPC Design Demand Will Drive Shares Higher

Analysts have nudged their price target on Cadence Design Systems higher by $2 to approximately $384 per share, citing sustained strength in advanced chip design activity for artificial intelligence and high performance computing, as well as solid near term growth guidance. Analyst Commentary JPMorgan lifted its price target on Cadence Design Systems to $405 from $390 and reiterated an Overweight rating following a strong Q3 print and guidance for another quarter of solid growth.
MSTR
US$158.24
Strategy
7D
-10.3%
1Y
-56.6%